Beware of paying double commission
ALL TOO often residential property sellers find themselves theoretically or actually committed to paying double commissions, says Simon Raab, manager of Greeff Properties’ southern suburbs sales team.
“The law stipulates that, unless otherwise stated in the mandate agreement, commission is payable to any agent who is the “effective cause” of the sale, even if his or her mandate was terminated some time before the sale took place. If a second agent has been called in to market the property, whether or not he has helped secure the sale, the seller might well have to pay commissions to the previous and the current agent.
“There is almost no way out of paying commissions to both agents unless it has been stipulated at the outset to the second agent that any buyer introduced to the property by the first agent will result in him losing his commission,” says Raab.